tag:blogger.com,1999:blog-79802376433672270572018-04-27T11:56:07.201-07:00Yacht Build AdvisorINFORMATION AND ADVICE.....for Yacht Buyers, Owners, and Sellers.....by PHIL FRIEDMAN, New Build &amp; Refit ConsultantPHIL FRIEDMANhttp://www.blogger.com/profile/15342167115867483681noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-7980237643367227057.post-53980243755022009112018-04-27T11:46:00.004-07:002018-04-27T11:56:07.166-07:00<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody><tr><td style="text-align: center;"><a href="https://2.bp.blogspot.com/-w8RjFPpCRYA/WuNv01cyjdI/AAAAAAAABqE/9UArb92ey6kuVG9XCseTmwvkkCU_32ruwCLcBGAs/s1600/Ten%2BGolden%2Bcover%2Blg%2Bfont_for%2BLI%2Bprofile.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="400" data-original-width="600" height="132" src="https://2.bp.blogspot.com/-w8RjFPpCRYA/WuNv01cyjdI/AAAAAAAABqE/9UArb92ey6kuVG9XCseTmwvkkCU_32ruwCLcBGAs/s200/Ten%2BGolden%2Bcover%2Blg%2Bfont_for%2BLI%2Bprofile.jpg" width="200" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;"><span style="color: #cc0000; font-size: large;"><b>EXPANDED SECOND EDITION NOW AVAILABLE</b></span></td></tr></tbody></table><div style="text-align: center;"></div><div style="text-align: center;"><h2><br /></h2></div>PHIL FRIEDMANhttp://www.blogger.com/profile/15342167115867483681noreply@blogger.comtag:blogger.com,1999:blog-7980237643367227057.post-23273762416477593862017-11-10T20:37:00.000-08:002018-02-21T06:59:01.036-08:00THE LITTLE eBOOK THAT SAYS A LOT<div class="separator" style="clear: both; text-align: center;"><a href="https://2.bp.blogspot.com/-rEl-cQqW3J4/Wo2JDYj2HVI/AAAAAAAABgw/xpDuB_Jm_ZEfjfYGDeCewtIXBgWKoelDwCLcBGAs/s1600/Ten%2BGolden%2BRules_cover%2Bshot-%2Blarge%2Bfont.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="343" data-original-width="228" height="200" src="https://2.bp.blogspot.com/-rEl-cQqW3J4/Wo2JDYj2HVI/AAAAAAAABgw/xpDuB_Jm_ZEfjfYGDeCewtIXBgWKoelDwCLcBGAs/s200/Ten%2BGolden%2BRules_cover%2Bshot-%2Blarge%2Bfont.jpg" width="132" /></a></div><span style="font-family: &quot;arial&quot;;"><span style="color: black;">To date, more than 5,000 copies distributed. The comments and reviews are&nbsp;excellent for “TEN GOLDEN RULES FOR SUCCESSFUL NEW BUILD PROJECTS"&nbsp; </span></span><span style="font-family: &quot;arial&quot;;"><span style="color: black;">Here is a sampling <span style="mso-bidi-font-family: Arial;">—<o:p></o:p></span></span></span><br /><span style="color: black;"></span><br /><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: &quot;arial&quot;;"><span style="color: black;"><u>From Douglas Sharp (Douglas Sharp Yacht Design, Inc., San Diego, CA, USA):</u><o:p></o:p></span></span></div><span style="font-family: &quot;arial&quot;;"><span style="color: black;">“I read your e-book with great interest, and appreciate you sending it to me. The school of hard knocks has certainly taught us many of the lessons alluded to in your book, and I heartily agree with your conclusions and advice… Our industry needs to pay attention to hard won accumulated experience.”<o:p></o:p></span></span><br /><span style="color: black;"></span><br /><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: &quot;arial&quot;;"><span style="color: black;"><u>From Stephen Moon (Board Certified Admiralty and Maritime Law Specialist, Stephen M. Moon, P.A., Cocoa, FL, USA):<o:p></o:p></u></span></span></div><span style="font-family: &quot;arial&quot;;"><span style="color: black;">“Your e-book is excellent.<span style="mso-spacerun: yes;">&nbsp; </span>I should have been doing a lot of other things this morning but I could not resist reading the e-book as soon as I had a break…<span style="mso-spacerun: yes;">&nbsp; </span>Your remarks are very insightful and will be appreciated by many.<span style="mso-spacerun: yes;">&nbsp; </span>I have a much better understanding of the events leading up to the actual build process and the important issues to consider before construction now.<span style="mso-spacerun: yes;">&nbsp; </span>Your e-book is a quick, must read for anyone involved in a new build project or major refit.” <o:p></o:p></span></span><br /><span style="color: black;"></span><br /><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: &quot;arial&quot;;"><span style="color: black;"><u>From <span style="mso-spacerun: yes;">&nbsp;</span>Harry Jorgenson, (Jorgensen Marine Ltd, Atatu, Auckland,.NZ):</u> <o:p></o:p></span></span></div><span style="font-family: &quot;arial&quot;;"><span style="color: black;">“Having been involved with large yacht building since the late 70s in varying roles I understand your 10 Golden Rules better than most. It is the most sensible advice that I have read for some time and should be essential reading for all involved.”<o:p></o:p></span></span><br /><span style="color: black;"></span><br /><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: &quot;arial&quot;;"><span style="color: black;"><u>From Diane M. Byrne (Editor, Megayacht News, www.megayachtnews.com):<o:p></o:p></u></span></span></div><span style="font-family: &quot;arial&quot;;"><span style="color: black;">“I've just finished reading your eBook, and it contains sage advice for owners and their team of advisers.”<o:p></o:p></span></span><br /><span style="color: black;"></span><br /><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: &quot;arial&quot;;"><span style="color: black;"><u>From Kenny Wooton (Editor-in-Chief, Yachts International magazine):</u> <span style="mso-spacerun: yes;">&nbsp;&nbsp;</span><o:p></o:p></span></span></div><span style="font-family: &quot;arial&quot;;"><span style="color: black;">“Each “rule” is explored in clear, concise prose easily accessible to non-experts.” <span style="mso-spacerun: yes;">&nbsp;</span><span style="mso-spacerun: yes;">&nbsp;</span><o:p></o:p></span></span><br /><span style="color: black;"></span><br /><span style="font-family: &quot;arial&quot;;"><span style="color: black;"></span></span><br /><span style="font-family: &quot;arial&quot;;"><span style="color: black;">My&nbsp;sincere thanks and genuine&nbsp;appreciation goes out to all who have taken the time to read the eBook and send their comments. .<o:p></o:p></span></span><br /><span style="color: black;"></span><br /><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="color: black;"><b>For your FREE copy of TEN GOLDEN RULES FOR SUCCESSFUL NEW BUILD PROJECTS, email<span style="color: blue;"> </span></b><b><span style="color: blue;"><a href="mailto:Phil@YachtBuildAdvisor.com">Phil@YachtBuildAdvisor.com</a></span></b></span><span style="color: black;"><b>, and insert “eBook” on the subject line.<o:p></o:p></b></span></div>PHIL FRIEDMANhttp://www.blogger.com/profile/15342167115867483681noreply@blogger.com0tag:blogger.com,1999:blog-7980237643367227057.post-40352975094721527532017-07-15T11:13:00.000-07:002018-02-21T06:54:22.136-08:00WHAT FINANCIAL PROTECTIONS ARE AVAILABLE TO A NEW BUILD BUYER?<span style="color: black; font-family: &quot;arial&quot;;"><span style="mso-bidi-font-family: Arial; mso-bidi-font-size: 12.0pt;"><span style="font-family: &quot;arial&quot;;"><o:p><span style="font-family: &quot;times new roman&quot;;"> </span></o:p></span></span></span><br /><span style="color: black; font-family: &quot;arial&quot;;"><span style="font-family: &quot;arial&quot;;"></span></span><br /><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-layout-grid-align: none;"><span style="color: black; font-family: &quot;arial&quot;;"><span style="font-family: &quot;arial&quot;;"><a href="http://3.bp.blogspot.com/-25VOB4nEDLU/UA2Vgv91XeI/AAAAAAAAAlM/qoAqtsMVkag/s1600/Ford_Photos_MVC-007F.JPG" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="150" src="https://3.bp.blogspot.com/-25VOB4nEDLU/UA2Vgv91XeI/AAAAAAAAAlM/qoAqtsMVkag/s200/Ford_Photos_MVC-007F.JPG" width="200" /></a><span style="mso-bidi-font-family: Arial; mso-bidi-font-size: 12.0pt;"></span></span></span><br /><span style="color: black; font-family: &quot;arial&quot;;"><span style="font-family: &quot;arial&quot;;"><span style="mso-bidi-font-family: Arial; mso-bidi-font-size: 12.0pt;">Almost all contracts for the construction of a new yacht provide for an initial payment, plus several more “progress” or “milestone” payments during the project.&nbsp;Therefore, most new build situations have the buyer paying for construction of the yacht out ahead of its completion and delivery. Consequently, a question that commonly arises is, “What financial protections are available to the buyer&nbsp;between the time of contracting and&nbsp;receiving&nbsp;delivery of the yacht?”<o:p></o:p></span></span></span></div><span style="color: black; font-family: &quot;arial&quot;;"><span style="font-family: &quot;arial&quot;;"><span style="font-family: &quot;times new roman&quot;;"> </span><br /></span></span><br /><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-layout-grid-align: none;"><span style="color: black; font-family: &quot;arial&quot;;"><span style="font-family: &quot;arial&quot;;"><br /></span></span><span style="color: black; font-family: &quot;arial&quot;;"><span style="font-family: &quot;arial&quot;;"><br /></span></span><span style="color: black; font-family: &quot;arial&quot;;"><span style="font-family: &quot;arial&quot;;"><br /></span></span><span style="color: black; font-family: &quot;arial&quot;;"><span style="font-family: &quot;arial&quot;;"><span style="mso-bidi-font-family: Arial; mso-bidi-font-size: 12.0pt;"><b>NEW BUILDS IN THE U.S., CANADA, AND WESTERN EUROPE<o:p></o:p></b></span></span></span></div><span style="color: black; font-family: &quot;arial&quot;;"><span style="font-family: &quot;arial&quot;;"><span style="mso-bidi-font-family: Arial; mso-bidi-font-size: 12.0pt;"></span><br /><span style="mso-bidi-font-family: Arial; mso-bidi-font-size: 12.0pt;">In the U.S., a new build buyer who is paying a deposit and progress (milestone) payments can be protected under the Uniform Commercial Code (UCC) by “perfecting” a First Priority Security Interest in the new yacht under construction. This form of security interest places the new build buyer first in line for the payout of any monies in the event of a shipyard reorganization or bankruptcy.<o:p></o:p></span><br /><br /><span style="mso-bidi-font-family: Arial; mso-bidi-font-size: 12.0pt;">The legal perfection of a First Priority Security Interest and the concomitant filing of a lien against the vessel in process is one of the best forms of protection for a new build buyer. The process is relatively straightforward, but keep in mind three key points: 1) An agreement by the builder to cede such an interest to the buyer should be written into the new build contract, 2) the filing and perfection of this kind of claim and associated lien is always best handled by legal counsel experienced in such matters, and 3) writing the relevant provision into the new build contract doesn’t do any good if you don’t follow up to ensure that the appropriate UCC filings are actually made and perfected.<o:p></o:p></span><span style="font-family: &quot;times new roman&quot;;"> </span><br /><br /><span style="mso-bidi-font-family: Arial; mso-bidi-font-size: 12.0pt;">Outside the U.S., similar forms of protection for the new build buyer are available in Canada and many countries in Western Europe. But as you move further away from the type of legal system found in the United States, the new build buyer’s options in this particular regard narrow significantly. However, that does not mean that you have to forego financial protections in an overseas new build deal.<o:p></o:p></span><span style="font-family: &quot;times new roman&quot;;"> </span><br /><br /><span style="mso-bidi-font-family: Arial; mso-bidi-font-size: 12.0pt;"><b>ELSEWHERE IN THE YACHT BUILDING WORLD<o:p></o:p></b></span><span style="font-family: &quot;times new roman&quot;;"> </span><br /><br /><span style="mso-bidi-font-family: Arial; mso-bidi-font-size: 12.0pt;">There several other devices and techniques that can be employed to protect the financial interests of a new build buyer. These include the judicious use of Irrevocable Commercial Letters of Credit and the procurement of performance security bonds provided by insurance underwriters. Once again, the best course of action for a new build buyer is to engage the services of an admiralty or business attorney who<o:p></o:p></span><span style="font-family: &quot;times new roman&quot;;"> </span><span style="mso-bidi-font-family: Arial; mso-bidi-font-size: 12.0pt;">practices in, and is familiar with the laws of the country in which the selected shipyard </span><span style="line-height: 115%; mso-bidi-font-family: Arial; mso-bidi-font-size: 12.0pt;">operates and does business.<o:p></o:p></span><span style="font-family: &quot;times new roman&quot;;"> </span><br /><br /><span style="line-height: 115%; mso-bidi-font-family: Arial; mso-bidi-font-size: 12.0pt;">Another key element in providing financial protection to the buyer in a new build situation is the clear identification of the company from whom the new yacht is actually being purchased. Many a new build buyer visits a large, well-established and well-capitalized shipyard to develop his or her project, and to negotiate and structure a deal, only to then sign a contract with a corporation that functions as a sales or marketing “arm” of the shipyard. And unfortunately, in too many cases, this sales company is a separate legal entity from the shipyard, and does not have adequate corporate assets to protect the buyer in the event of failure on the part of the shipyard to perform on the terms of the new build contract.</span><br /><br /><span style="line-height: 115%; mso-bidi-font-family: Arial; mso-bidi-font-size: 12.0pt;">In such a case, the new build buyer may find him or herself with a claim against an essentially asset-less corporation, which has already sent the buyer’s initial and progress payments on to the shipbuilder. Therefore, a new build buyer does well always to make sure that his or her contract is directly with the shipyard that will be building the yacht, or that the contract is specifically guaranteed by the shipyard involved, and backed by all the assets of that shipyard. Always watch out for elaborate asset protection schemes that effectively isolate the assets of the shipyard from claims by a new build buyer, in the event of financial problems and a failure to perform on the part of the yacht builder. Once again, your best protection is to secure the counsel of an appropriately qualified and experienced maritime attorney to assure that you do not find yourself in a contractual relationship with an effectively shell corporation.</span><br /><br /><span style="line-height: 115%; mso-bidi-font-family: Arial; mso-bidi-font-size: 12.0pt;"><b>PRUDENCE, NOT FEAR<o:p></o:p></b></span><span style="font-family: &quot;times new roman&quot;;"> </span><br /><br /><span style="line-height: 115%; mso-bidi-font-family: Arial; mso-bidi-font-size: 12.0pt;">Such recommendations for reasonable prudence should not be interpreted as occasions for fear. Most new build projects go off without a financial hitch. However, the cost in time and money of providing the best possible financial protections for a new build buyer are generally small in comparison to the price being paid for the new yacht, and in comparison to the risk of loss, in the event that problems do arise. Proper attention to such issues at the time of purchasing a new yacht that is not yet completed, or contacting to have one built from scratch, is the best way to ease your mind and put yourself in a position to enjoy the project. <span style="mso-spacerun: yes;">&nbsp;</span><span style="mso-spacerun: yes;">&nbsp;</span><span style="mso-spacerun: yes;">&nbsp;</span></span><o:p></o:p><br /> <span style="font-family: &quot;times new roman&quot;;"> </span></span></span>PHIL FRIEDMANhttp://www.blogger.com/profile/15342167115867483681noreply@blogger.com3tag:blogger.com,1999:blog-7980237643367227057.post-64879977944317153872013-09-28T08:25:00.000-07:002013-10-22T19:24:35.488-07:00Major Refits: Dealing with Emergent Work<a href="http://3.bp.blogspot.com/-xj78Pn87QVY/ULjax6Eh5CI/AAAAAAAAAnc/Nl_WtiH3-Fc/s1600/Brun_Stbd+Quarter.JPG" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="150" src="http://3.bp.blogspot.com/-xj78Pn87QVY/ULjax6Eh5CI/AAAAAAAAAnc/Nl_WtiH3-Fc/s200/Brun_Stbd+Quarter.JPG" width="200" /></a><span style="color: black; font-family: Arial, Helvetica, sans-serif;"></span><br /><span style="color: black; font-family: Arial, Helvetica, sans-serif;">Your yacht is headed to the shipyard for a <span style="color: black;">major refit</span>. You’ve had a pre-job inspection completed, and all items identified for repair or replacement are covered under a firm fixed-price agreement. The project is planned, budgeted, and all wrapped up. Well…maybe not. Not if you haven’t considered "emergent work" and how it is to be handled once the refit begins.</span><br /><br /><span style="color: black; font-family: Arial, Helvetica, sans-serif;"></span><br /><span style="color: black; font-family: Arial, Helvetica, sans-serif;"><strong></strong></span><br /><span style="color: black; font-family: Arial, Helvetica, sans-serif;"><strong>Emergent work</strong> is critical work that needs to performed, but the need for which is discovered only after a refit has started. It can involve anything from corroded piping or electrical connections to tank leaks or even structural issues that were not visible until, for example, certain interior joinery panels were removed as part of the planned refit. The important point to understand is that, as any candid shipyard manager will tell you, emergent work is often the icing on the refit yard’s cake, when it comes to profit.</span><br /><span style="color: black; font-family: Arial, Helvetica, sans-serif;"></span><br /><span style="color: black; font-family: Arial, Helvetica, sans-serif;">The reason is pretty clear. Once a build or refit is underway, the shipyard no longer finds itself subject to the same competitive pressures it felt leading up to the original contract. Consequently, if your refit agreement doesn’t detail how emergent work. and change orders related to it, will be handled and priced, your agreement has a hole in it big enough to pilot a superyacht through.</span><br /><span style="color: black; font-family: Arial, Helvetica, sans-serif;"></span><br /><span style="color: black; font-family: Arial, Helvetica, sans-serif;">Unless a procedure governing the acceptance, pricing, and effect on schedule of emergent work is incorporated into your refit agreement, you are open to finding yourself paying for emergent work at a unit rate much higher than in your original contract. Moreover, you may be forced to accept unreasonable delays to the scheduled completion/delivery date. And if that scheduled completion/delivery date is linked to plans for a date-sensitive cruise or charter, the true cost of the refit may end up to be much more expensive than you anticipate. So what to do?</span><br /><span style="color: black; font-family: Arial, Helvetica, sans-serif;"></span><br /><span style="color: black; font-family: Arial, Helvetica, sans-serif;"><strong>The original refit contract</strong> should specify clearly an all-inclusive hourly shop rate that is to be applied to emergent work and related change orders. The original contract should also lay out clearly a reasonable and mutually acceptable procedure for calculating any schedule changes that are to ensue as the result of the yard’s accepting the emergent work. And there should also be a detailed procedure for pre-submission of pricing quotes and proposed schedule modifications to the vessel’s owner or his/her representative. Such detail should include specification of definite time periods to be allowed for submission, review, and approval/rejection of change orders related to such emergent work.</span><br /><span style="color: black; font-family: Arial, Helvetica, sans-serif;"></span><br /><span style="color: black; font-family: Arial, Helvetica, sans-serif;">Dealing effectively with emergent work requires that both the shipyard and the yacht’s owner act reasonably and in good faith. To avoid unnecessarily delaying a project in mid-stream, consideration should be given to incorporating provisions in the refit agreement to the effect that, in the event of a disagreement over emergent work, the shipyard's work on the yacht will proceed as originally schedule, subject retroactively to any pricing and schedule modifications ultimately awarded by an agreed upon arbitration procedure. If nothing else, this sort of provision brings significant pressure upon all parties to achieve a negotiated resolution to any disputes involving emergent or change-order work. It also avoids unnecessarily delaying the progress of a refit due to a disagreement about the pricing and timing of emergent work.</span><br /><span style="color: #20124d;"></span><br /><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Arial;"><o:p></o:p></span>&nbsp;</div>PHIL FRIEDMANhttp://www.blogger.com/profile/15342167115867483681noreply@blogger.com0tag:blogger.com,1999:blog-7980237643367227057.post-66642883202800501582012-10-08T14:27:00.001-07:002012-11-30T08:43:40.524-08:00INTELLIGENT POWERING: SELECTION & SPECIFICATION<br /><div style="text-align: left;"><a href="http://2.bp.blogspot.com/-gbs_-kZYoo8/UG9TgieLj_I/AAAAAAAAAmg/K59wbG-9BIE/s1600/Blog_Photo_Engine+install_edit2.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="150" src="http://2.bp.blogspot.com/-gbs_-kZYoo8/UG9TgieLj_I/AAAAAAAAAmg/K59wbG-9BIE/s200/Blog_Photo_Engine+install_edit2.jpg" width="200" /></a><a href="http://2.bp.blogspot.com/-gbs_-kZYoo8/UG9TgieLj_I/AAAAAAAAAmg/K59wbG-9BIE/s1600/Blog_Photo_Engine+install_edit2.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"></a><a href="http://2.bp.blogspot.com/-gbs_-kZYoo8/UG9TgieLj_I/AAAAAAAAAmg/K59wbG-9BIE/s1600/Blog_Photo_Engine+install_edit2.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a> <span style="font-family: Arial;"><span style="color: #444444;">So, you’re<span style="color: blue;"> </span><a href="http://www.dtfyachts.com/new-builds-intro.cfm" target="_blank"><span style="color: blue;">having a yacht built</span></a>…or perhaps, undertaking a major refit and repowering of an older vessel. And you’re naturally considering not only which engine make and model to choose, but grappling with the decision as to selection of power rating.</span></span><br /><span style="font-family: Arial;"><span style="color: #444444;"><o:p></o:p></span></span>&nbsp;</div><div style="text-align: left;"><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Arial;"><span style="color: #444444;">Well, let me tell you that a significant percentage, if not all of the advice that you will commonly receive may be misinformed or misguided. One of the most common “old wives’ tale” you will be exposed to is:<o:p></o:p></span></span></div><span style="color: #444444;"> </span>&nbsp;<span style="font-family: Arial;"><strong><span style="color: #444444;">“Higher HP&nbsp;engines always consume more fuel than those with lower ratings.”</span></strong></span><br /><span style="font-family: Arial;"><strong><span style="color: #444444;"><o:p></o:p></span></strong></span><br /><span style="color: #444444;"> <span style="font-family: Arial;">Fuel consumption is directly related to power production. An internal combustion engine only produces power in response to a load. All other factors held constant, an engine with a higher HP rating will not produce any more power than one with a lower HP rating, when both engines are faced with the identical load, provided that each engine is sufficiently powerful to adequately respond to the load in question.</span></span><br /><span style="color: #444444;"><span style="font-family: Arial;"><o:p></o:p></span></span>&nbsp;<span style="color: #444444;"> </span><br /><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Arial;"><span style="color: #444444;">Horsepower is a measure of work accomplished. As such, it is the product of torque and engine rpm. Torque is produced by combustive force in an engine’s cylinders acting through its chain of pistons, connecting rods and crankshaft. Assuming similarly efficient fuel burn between different engines (a reasonable assumption in most cases), combustive force is determined by the quantity of fuel burned. The upshot is that for a given load — or we may say, for a given application in a specific yacht — the fuel consumption of two engines with different HP ratings will be effectively the same.</span></span>&nbsp;</div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="color: #444444;"><span style="font-family: Arial;"><strong>HORSEPOWER RATING VERSUS COST</strong></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Arial;"><span style="color: #444444;">For this reason, in terms of fuel consumption and range, choosing an engine with a lower HP rating may not be advantageous. If anything, it is likely that, of two engines able to handle the load that will be placed upon them, the one with the lower HP rating will have a lower first cost. Thus, if you need, say, a 500 HP engine, selecting one with a similar weight, but a maximum 700 HP rating will probably cost more — although not ultimately in terms of fuel consumption.<o:p></o:p></span></span></div><span style="color: #444444;"> <span style="font-family: Arial;">Against that, however, you need to consider the effect of maximum HP rating on longevity or MTBF (mean time between failure). If you run an engine consistently for long periods of time at 95% to 100% of its rated horsepower output, you are almost certainly going to seriously reduce its operating life. So the idea is to select an engine or engines with power ratings which assure that the bulk of your operating hours will be at 80% to 85% of maximum rated output. For by increasing MTBF, you will actually be reducing the ultimate cost per hour of running time of your engines.<o:p></o:p></span></span><span style="color: #444444;"> </span><br /><span style="color: #444444;"></span><br /><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Arial;"><strong><span style="color: #444444;">NO DIETS FOR YACHTS<o:p></o:p></span></strong></span></div><span style="color: #444444;"> <span style="font-family: Arial;">You should also consider that no yacht ever loses weight as it ages. What we refer to in the industry as “weight gain” is a never-ending, never-reversing process that begins when the vessel moves from design and engineering to actual construction, then to outfitting and commissioning, and finally to and during real-world use. This life cycle is always, yes always, accompanied by a growth in the overall, loaded weight of a vessel, and consequently with an increasing load for her propulsion engines to face. All due to the fact that we always put things onto and into a yacht — tenders, jet skis, dive tanks, air compressors, and all other manner of gear and equipment — but we rarely, if ever take anything off.<o:p></o:p></span></span><span style="color: #444444;"> </span><br /><span style="color: #444444;"></span><br /><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Arial;"><span style="color: #444444;">If the engines you select start out life in an application that is initially projected to see them loaded to 95% or more of their rated power, you can almost certainly expect that somewhere during their life in the yacht in question, they will end up running overloaded, that is, producing power at levels above their rated maximum. This will mean accelerated stress, wear, and tear; decreased MTBF, and ultimately higher cost per hour of running time than if you had specified and initially paid for engines with a higher power output rating.<o:p></o:p></span></span></div><span style="color: #444444;"> <span style="font-family: Arial;">But that’s not the only problem with engines whose power production ratings are only marginal for the application at hand. My experience in yacht construction is that a significant number of vessels specified with engines whose rated maximum power output is very close to the design loads initially projected, end up underpowered for their performance targets, by the time their construction is completed.</span></span><br /><span style="color: #444444;"><span style="font-family: Arial;"><o:p></o:p></span></span><span style="color: #444444;"> </span><br /><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Arial;"><strong><span style="color: #444444;">YACHT CONSTRUCTION IN THE REAL WORLD<o:p></o:p></span></strong></span></div><span style="color: #444444;"> <span style="font-family: Arial;">As construction and final engineering progress in a yacht build project, previously unanticipated weight growth may force you to accept lower vessel performance than originally targeted. In such cases, there may be remedial steps that can be taken while the build is still in process. For example, one might be able to boost projected thrust by upsizing the vessel’s propellers. However, because of the higher loading produced by such larger propellers, this kind of move will only be successful if the engines selected at the early stages of project development and specification have a sufficient margin of reserve power available.</span></span><br /><span style="color: #444444;"><span style="font-family: Arial;"><o:p></o:p></span></span><span style="color: #444444;"> </span><br /><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="color: #444444; font-family: Arial;">In my experience as a yacht builder,<span style="mso-spacerun: yes;">&nbsp; </span>it is prudent to select engines whose power production ratings are 10% to 25% higher than the designing naval architects and engineers originally anticipated would be necessary. Provided you watch to see that the overall weight of the higher powered engines is not significantly higher than those originally specified (and in many cases they won’t be), you can provide for a margin of reserve power, without incurring and penalties in terms of fuel consumption and range, if it turns out that the additional power is not required. A bonus will be that the engines with the higher power ratings, when run at a lower percentage of rated maximum power, will last longer and be more reliable.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="color: #444444; font-family: Arial;">My next post will deal with why total fuel consumed provides a better basis than engine hours for scheduling maintenance.</span></div></div>PHIL FRIEDMANhttp://www.blogger.com/profile/15342167115867483681noreply@blogger.com0